Parker HannifinFRA:PAR -1.79%90 Interest Coverage is 11.44 as of Mar. 2026, which is 26% above its 10-year median of 9.11. GuruFocus rates FRA:PAR with a GF Score™ of 90/100 and a GF Value™ of €599.91 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,329 Industrial Products companies, Parker Hannifin ranks worse than 57.36% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Parker Hannifin's
Operating Income
for the
three
months ended in Mar. 2026 was €980 Mil. Parker Hannifin's Interest Expense for the
three
months ended in Mar. 2026 was €-86 Mil.
Parker Hannifin's interest coverage for the quarter that ended in Mar. 2026 was 11.44.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Parker Hannifin's Interest Coverage or its related term are showing as below:
FRA:PAR'
s Interest Coverage Range Over the Past 10 Years
Min: 5.36 Med: 9.11 Max: 11
Current: 10.83
FRA:PAR's Interest Coverage is ranked worse than 57.36% of 2329
companies
in the Industrial Products industry
Industry Median: 14.79
vs FRA:PAR: 10.83
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Parker Hannifin Interest Coverage Related Terms
Parker Hannifin Interest Coverage Historical Data
* Premium members only.
The historical data trend for Parker Hannifin's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:PAR vs CMI, EMR, ITW: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Parker Hannifin's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Parker Hannifin Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Parker Hannifin's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Parker Hannifin's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Parker Hannifin (FRA:PAR) has a Interest Coverage of 11.44 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Parker Hannifin and its competitors. This is 26% above median its historical median of 9.11. Over the past decade, Parker Hannifin's Interest Coverage has ranged from 5.36 to 11.00. According to the industry distribution chart, Parker Hannifin ranks #1336 out of 2329 companies in the Industrial Products industry, placing it in the top 57.4%.
Is Parker Hannifin's Interest Coverage too high?
Parker Hannifin's current Interest Coverage of 11.44 is 26% above median its 10-year median of 9.11. Over the past 10 years, this metric has ranged from a low of 5.36 to a high of 11.00. The Industrial Products industry median Interest Coverage is 14.79. Parker Hannifin's value of 11.44 is 22.7% below this industry median. Based on the distribution chart, Parker Hannifin ranks #1336 out of 2329 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Parker Hannifin has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Parker Hannifin's Interest Coverage compare to CMI and EMR?
According to the Industrial Products industry distribution chart, Parker Hannifin ranks #1336 out of 2329 companies for Interest Coverage. This places Parker Hannifin in the lower half of its industry. The industry median Interest Coverage is 14.79. Parker Hannifin's value of 11.44 is 22.7% below this benchmark. Historically, Parker Hannifin's own Interest Coverage has ranged from 5.36 to 11.00 over the past decade. While the company's 10-year median is 9.11 vs. the industry median of 14.79, Parker Hannifin has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.79, based on 2,329 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parker Hannifin's current Interest Coverage of 11.44 is 22.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Parker Hannifin and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parker Hannifin's current Interest Coverage is 11.44, which is 26% above median its own 10-year median of 9.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parker Hannifin stock overvalued right now?
Based on GuruFocus' analysis, Parker Hannifin (FRA:PAR) is currently considered Significantly Overvalued. The stock's GF Value™ is €599.91, compared to a current price of €856.80 — trading 42.8% above its estimated fair value. The current Interest Coverage is 11.44, which is 26% above median its 10-year median of 9.11 and 22.7% below the Industrial Products industry median of 14.79. Parker Hannifin's overall GF Score™ is 90/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Parker Hannifin (FRA:PAR), the current Interest Coverage is 11.44 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Parker Hannifin (FRA:PAR) Overvalued in 2026?
Based on GuruFocus' analysis, Parker Hannifin stock appears to be overvalued.
The current stock price of €856.80 is trading 42.8% above its estimated GF Value™ of €599.91.
GuruFocus considers Parker Hannifin to be Significantly Overvalued.
Key valuation signals for FRA:PAR:
Interest Coverage: 11.44 (26% above median its 10-year median of 9.11)
GF Value™: €599.91 vs. price of €856.80 (42.8% above fair value)
Industry Position: 22.7% below the Industrial Products median (#1336 of 2329)
No single metric tells the full story. See the FRA:PAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Parker Hannifin started out in 1917 as Parker Appliance, selling pneumatic brakes. Through the acquisition of branded components, the firm has expanded into aerospace engines, agricultural and construction machinery, freight and passenger vehicles, and industrial automation equipment. Within these larger systems, Parker sells a wide array of small, critical pieces such as hydraulic, electromechanical, climate control, and filtration components. Many of its products are designed to work together, resulting in a high rate of cross-selling.
90GF Score
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